Political and economic relations
The Agreement on the European Economic Area (EEA) is the main pillar on which the political and economic relations between the European Union and Iceland rest. Decision-making and political dialogue between the EU and the EEA EFTA states takes place within the framework of common EEA institutions. An important part of the relations is covered by the Schengen Agreement and bilateral agreements.
Iceland, Norway and Liechtenstein have been members of EU's internal market since the EEA Agreement entered into force in 1994. In addition to giving access to EU's internal market, the EEA Agreement gives Iceland the right to participate in a range of EU Programmes in areas such as research and education. Relations between the EU and Norway in the area of fisheries and agriculture are mainly covered by bilateral agreements, as the EU's Common Agricultural Policy and Common Fisheries Policy are not part of the EEA Agreement. Norway is a member of the Schengen Agreement on the abolishment of checks on all internal borders of the Schengen area in lieu of a single external border, which gives Norwegian citizens the right to travel passport-free within the area.